The following is the full statement from Vicky Wright, CIPD president and chair of the CIPD’s Remuneration Committee, regarding the story ‘CIPD branded unfair as Jackie Orme gets bonus despite pay freeze’:
“Jackie’s remuneration package contains a significant element that is linked to stretching short and long term performance targets. This is quite deliberate, and reflects good practice in executive remuneration.
“Jackie’s performance is assessed against a scorecard of membership, financial, service development and strategic measures and targets. Her objectives this year also included development and implementation of a number of projects crucial to help strengthen service to existing members, attract new members and support the future of the HR profession.
“We’ve thoroughly reviewed Jackie’s performance, including development of our membership proposition, the development and launch of the CIPD HR Profession Map and the revitalisation of CIPD relationships with key HR leaders. On the basis of this review, and the substantial progress made, but also taking into account the economic context, the Remuneration Committee decided to recognise Jackie’s performance in her first full year at the CIPD with a bonus that reflects her achievements. Her overall remuneration package is smaller than that paid to our outgoing director-general last year.
“In terms of comparison with other CIPD staff, it is important to note that the vast majority of CIPD employees are not currently eligible for a performance related bonus, and their base pay reflects this. In the past, where the organisation has hit its financial targets, a small discretionary bonus has been paid to all staff. In the current economic climate we did not hit all our financial targets, and so no discretionary bonus was paid this year.
“In order to minimise the need for redundancies, and to help finance a freeze in membership fees for 2009, base pay was also frozen this year for the majority of CIPD staff – including for Jackie Orme.”